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Editorial - More practical minds in House may put job-killing bill to rest

Published: Friday, April 19, 2013 at 11:53 p.m.

Last Modified: Friday, April 19, 2013 at 11:53 p.m.

State lawmakers from the region that benefits most from the state’s film incentives package should be the last people to introduce a bill to kill the program. But that’s what state Reps. Rick Catlin, R-New Hanover, and Chris Millis, R-Pender, have gone and done.

Thank goodness it looks as though it won’t get much further in the House.

Catlin dislikes incentives in general, especially those offering refundable tax credits based on what productions spend in the state. He has plenty of company among voters, who have become frustrated that large companies and Hollywood filmmakers get money back while the taxpayers are not seeing similar relief.

The problem is that North Carolina is not the only state that offers these incentives, and if we cannot remain competitive, filmmakers will pass us by. That’s what was happening before former state Rep. Danny McComas, R-New Hanover, and other Cape Fear area legislators pushed to increase the film incentives package to the current program, which refunds up to 25 percent of production costs.

Since then, Wilmywood has been in full swing again. Two major-network TV shows, the upcoming blockbuster “Iron Man” and dozens of other productions have set up shop in North Carolina – a large percentage of them here in Wilmington. Those incentives not only bring the productions and the stars, but they produce local jobs for film crews and all sorts of support services.

House Bill 994, which apparently has little chance of passage, would take away the refundable credit, effectively causing North Carolina to surrender its robust film industry to more generous states. At present, the state is doing well competing even with states that have more generous incentives because there is already an infrastructure in place for movie making.

Catlin and Millis don’t seek to be known as job killers, but good-paying local jobs would go away if this bill were to pass. Even if it managed to get past the House, state Sen. Thom Goolsby, R-New Hanover, said he would work hard to save the incentives.

A recent report from the Fiscal Research Division of the General Assembly gave the impression that the incentives haven’t provided ample benefits. Those ordinary residents who work in the film industry or help supply productions know differently.

While the 2012 incentives payouts are still being calculated, productions spent an estimated $376 million last year, not counting what crewmembers and others spent with local businesses outside of the production costs, or the tourism it generates. In 2011, the state spent $30.3 million on incentives based on production spending of more than $242 million. That’s a pretty good return on investment.

There is little question that many if not most of those productions would have gone elsewhere had the 25 percent incentive not been in place. Unlike traditional businesses, which look for reasons to locate permanently in a community, film productions are transient. The producers don’t care about good schools, or nice parks, or cultural opportunities or the general economic climate. However, the hundreds of experienced film workers who call this place home are part of our community. If the film productions go away, so do their jobs.

<p>State lawmakers from the region that benefits most from the state's film incentives package should be the last people to introduce a bill to kill the program. But that's what state Reps. Rick Catlin, R-New Hanover, and Chris Millis, R-Pender, have gone and done.</p><p>Thank goodness it looks as though it won't get much further in the House.</p><p>Catlin dislikes incentives in general, especially those offering refundable tax credits based on what productions spend in the state. He has plenty of company among voters, who have become frustrated that large companies and Hollywood filmmakers get money back while the taxpayers are not seeing similar relief.</p><p>The problem is that North Carolina is not the only state that offers these incentives, and if we cannot remain competitive, filmmakers will pass us by. That's what was happening before former state Rep. Danny McComas, R-New Hanover, and other Cape Fear area legislators pushed to increase the film incentives package to the current program, which refunds up to 25 percent of production costs.</p><p>Since then, Wilmywood has been in full swing again. Two major-network TV shows, the upcoming blockbuster “Iron Man” and dozens of other productions have set up shop in North Carolina – a large percentage of them here in Wilmington. Those incentives not only bring the productions and the stars, but they produce local jobs for film crews and all sorts of support services.</p><p>House Bill 994, which apparently has little chance of passage, would take away the refundable credit, effectively causing North Carolina to surrender its robust film industry to more generous states. At present, the state is doing well competing even with states that have more generous incentives because there is already an infrastructure in place for movie making.</p><p>Catlin and Millis don't seek to be known as job killers, but good-paying local jobs would go away if this bill were to pass. Even if it managed to get past the House, state Sen. Thom Goolsby, R-New Hanover, said he would work hard to save the incentives.</p><p>A recent report from the Fiscal Research Division of the General Assembly gave the impression that the incentives haven't provided ample benefits. Those ordinary residents who work in the film industry or help supply productions know differently.</p><p>While the 2012 incentives payouts are still being calculated, productions spent an estimated $376 million last year, not counting what crewmembers and others spent with local businesses outside of the production costs, or the tourism it generates. In 2011, the state spent $30.3 million on incentives based on production spending of more than $242 million. That's a pretty good return on investment.</p><p>There is little question that many if not most of those productions would have gone elsewhere had the 25 percent incentive not been in place. Unlike traditional businesses, which look for reasons to locate permanently in a community, film productions are transient. The producers don't care about good schools, or nice parks, or cultural opportunities or the general economic climate. However, the hundreds of experienced film workers who call this place home are part of our community. If the film productions go away, so do their jobs.</p><p>That would be a loss not only to the economy, but to our community.</p>